Is Ethanol Blending with Petrol Approaching the 20% Goal?
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Synopsis
India is rapidly advancing its ethanol blending targets, with current blending rates soaring close to 20%. This government initiative not only aims to meet fuel needs but also enhances agricultural productivity. Discover the steps being taken to ensure success in the upcoming Ethanol Supply Year and the implications for the nation.
Key Takeaways
- Ethanol blending with petrol reached 19.93% in July.
- The target for 20% blending has been moved to 2025-26.
- Government initiatives include expanding feedstock production and providing subsidies.
- Public sector oil companies are involved in the Ethanol Blended Petrol Programme.
- Efforts are aimed at enhancing both fuel supply and agricultural productivity.
New Delhi, Aug 11 (NationPress) The blending of ethanol with petrol by public sector oil companies reached an impressive 19.93 percent in July this year, bringing the average for the current Ethanol Supply Year (ESY) 2024–25 to 19.05 percent, as reported to Parliament on Monday.
The nation’s goal of achieving 20 percent ethanol blending with petrol has been moved forward from 2030 to the upcoming Ethanol Supply Year (ESY) 2025-26, thanks to rapid advancements, stated Minister of State for Petroleum and Natural Gas, Suresh Gopi, in a written response during the Rajya Sabha session.
The government is actively encouraging the blending of ethanol with petrol under the Ethanol Blended Petrol (EBP) Programme, which sees Public Sector Oil Marketing Companies (OMCs) like Indian Oil, Bharat Petroleum, and Hindustan Petroleum selling ethanol-infused petrol.
To support the availability of feedstock necessary for achieving the 20 percent ethanol blending target by the Ethanol Supply Year (ESY) 2025-26, the government has implemented several initiatives. These include expanding feedstock options for ethanol production and developing maize clusters around ethanol plants to boost maize production in the vicinity of grain-based distilleries.
Moreover, the government has sanctioned the allocation of 52 lakh metric tonnes (LMT) of surplus rice from the Food Corporation of India (FCI) for ethanol production for both the ESY 2024-25 (from November 1, 2024, to October 31, 2025) and for ESY 2025-26 until June 30, 2026. An allowance for the diversion of 40 LMT of sugar for ethanol production has also been made for the ESY 2024-25.
Additionally, to enhance ethanol production and supply nationwide, the government has introduced an administered price mechanism for ethanol procurement under the EBP Programme, reduced the GST rate to 5 percent for ethanol used in the EBP Programme, and initiated various Ethanol Interest Subvention Schemes (EISS) from 2018-2022 for ethanol production utilizing molasses and grains. A dedicated subsidy scheme for Cooperative Sugar Mills to convert existing sugarcane-based distilleries into multi-feedstock facilities for ethanol production has also been established among other initiatives.
Point of View
The government's proactive measures in boosting ethanol blending reflect a commitment to sustainable development. This initiative not only addresses fuel needs but also supports local agriculture, ensuring a balanced approach to economic growth.
NationPress
19/08/2025
Frequently Asked Questions
What is the current blending percentage of ethanol with petrol?
As of July this year, the blending percentage of ethanol with petrol is 19.93%. This brings the average for the Ethanol Supply Year 2024-25 to 19.05%.
When is the new target for 20% ethanol blending?
The target for blending 20% ethanol with petrol has been moved up to the Ethanol Supply Year 2025-26.
What measures is the government taking to ensure ethanol production?
The government is expanding feedstock options, allocating surplus rice for production, and creating maize clusters around ethanol plants, among other initiatives.
What is the Ethanol Blended Petrol Programme?
The Ethanol Blended Petrol Programme promotes the blending of ethanol with petrol, allowing public sector oil companies to sell this blended fuel to consumers.
